The Company Law Board (CLB), an Indian independent quasi-judicial body, has ordered Telenor’s mobile JV in the country, Uninor, not to proceed with the auction of its assets until the next hearing, scheduled for 8 August.
On Wednesday (1 August), the…
The Company Law Board (CLB), an Indian independent quasi-judicial body, has ordered Telenor’s mobile JV in the country, Uninor, not to proceed with the auction of its assets until the next hearing, scheduled for 8 August.
On Wednesday (1 August), the board of Uninor, which is 67.25%-owned by Norway’s Telenor and the rest by Indian real estate company Unitech, announced it would auction the business.
Bidders were expected to express their interest by 6 August, and Telenor confirmed it was willing to take part in the auction.
The minimum bidding price was Rs40bn (US$717m) and Telenor said it would pay Rs41.9bn (US$751.5m) if no offers were made, according to local reports citing an auction notice.
But Unitech opposed the move and filed a petition with the CLB to block the sale.
Reacting to the CLB’s decision, Uninor said in an emailed statement today: “When Uninor faces a certain destruction of value when the licences will be cancelled, the only chance its employees have for sustained employment and for the customers to continue is being blocked by the minority shareholder.
“It is unfortunate that the stay has been granted. Uninor will pursue every legal measure available to it in the Indian courts to secure the interest of the company’s creditors, customers and employees.”
Telenor and Unitech have been entangled in a dispute over the management of Uninor for many months now. The row culminated in February this year when the Supreme Court ordered the cancellation of Uninor’s 2G licences amid the 2G scam saga. Shortly after, Telenor announced it would be seeking a new partner in Uninor.
